great piece, john. as you may or may not remember, i've harped on this concept of measured inflation is too high (and GDP greatly understates economic welfare) forever. my question is: do your correct comments and measures include the impacts of ignored and mismeasured product quality changes, or do they need to be added on still? thanks as always. best, swk
I worry that home prices will skyrocket, at least in USD terms. Not healthy for the young ones who want to buy homes that wages won't support. Wonder what other strategies exist to temper home prices?
The Fed is on a zombie annihilation quest, IMO. If they just stuck with price stability, the UNRATE will equalize itself out. But trying to serve two masters doesn't work, even while using NAIRU.
great piece, john. as you may or may not remember, i've harped on this concept of measured inflation is too high (and GDP greatly understates economic welfare) forever. my question is: do your correct comments and measures include the impacts of ignored and mismeasured product quality changes, or do they need to be added on still? thanks as always. best, swk
I worry that home prices will skyrocket, at least in USD terms. Not healthy for the young ones who want to buy homes that wages won't support. Wonder what other strategies exist to temper home prices?
The Fed is on a zombie annihilation quest, IMO. If they just stuck with price stability, the UNRATE will equalize itself out. But trying to serve two masters doesn't work, even while using NAIRU.
Love this: All of which boils down to Michael Kalecki’s famous statement to Joan Robinson that economics is the science of confusing stocks and flows.
Thanks Barry. You were one of the first to point out the danger of misinterpreting the employment and inflation reports almost a year ago.